The Northern Territory Government says it has reached an agreement with the South Australian and Western Australian Governments so that dialysis patients from those states will be able to be treated in Alice Springs.

The Territory Government stopped accepting new renal patients from across the border last year because facilities in Alice Springs could not cope with the demand.

It meant some South Australian and Western Australian patients were having to travel to Adelaide or Perth for dialysis treatment even though they lived much closer to Alice Springs.

The Chief Minister, Paul Henderson, says the deal was made at last week's COAG meeting, but he cannot yet say when it will be signed-off by the premiers of the two other states.

"This does mean the transfer of money across jurisdictions," he said.

"But we've all agreed it makes absolute sense to treat people close to where they live, build the capacity of Alice Springs in terms of renal dialysis.

"And I'd like to thank Premier Rann and Premier Barnett for being so cooperative."